Post by TheShadow on Feb 10, 2007 8:55:32 GMT -5
www.al.com/
By BRENDAN KIRBY
Staff Reporter
Former football great and University of Alabama broadcaster Kenny Stabler has agreed to put his longtime house near Orange Beach up for sale to pay off tax debts, court records indicate.
Attorneys for Stabler, his estranged wife, Rose Burch Stabler, and the U.S. Department of Justice asked a federal judge in Mobile this week to put a lawsuit against the Stablers on hold for six months to give the property a chance to sell. Senior U.S. District Judge Charles Butler Jr. was out of the office Thursday and Friday and did not rule on the request, but judges typically grant such motions when none of the parties opposes it.
The Justice Department in August sued the Stablers and the former quarterback's one-man business, the Stabler Co., seeking the seizure of the house on Ono Island and property in Mobile to satisfy a tax debt exceeding $500,000.
Stabler's lawyer, Robert Galloway, said Friday that his client continues to dispute the amount of taxes calculated by the IRS but concedes he does owe some money. Galloway said he is confident Stabler's half of the proceeds from a sale will be enough to resolve the case.
"We reached an agreement with the IRS that we're going to sell the house rather than have the IRS seize it," he said. "This is the time of the year that houses sell."
The lawsuit claims Stabler owed $241,565 in back income taxes, interest, fees and penalties as of Aug. 7. The period covered ran from 1999 to 2001. The federal government claims that his company, which arranges his public speaking and consulting engagements, owed $303,282 in back income and employment taxes, interest, fees and penalties for the period between 1995 and 2000.
The civil action accuses Stabler of moving money from the company to his personal account to avoid paying corporate taxes. It states that he transferred nearly $1.4 million from the Stabler Co. to himself in the form of "loans" in 1998 and 1999. At the time, Stabler had complete control over the company's finances and was its only shareholder and officer, according to the complaint.
"If it had not been for the improper control exerted by Stabler over Stabler Company, the corporation would have been able to satisfy its tax obligations," the suit states.
Galloway disputed that Stabler was trying to hide any assets. He suggested that confusion over income generated by the company caused the tax problems. Money essentially got taxed twice, once as business income and then again as personal income to Stabler, Galloway said. He added that he does not know why Stabler created the company rather than charge payments directly for his appearances.
Galloway said Stabler has not been accused of failing to file returns.
"He's been filing returns and didn't always have the money to pay the taxes," he said.
As the house sits on the market, Galloway said, he will continue to negotiate with the IRS over the precise amount of money his client owes.
Stabler, 61, graduated from Foley High School, earning the nickname "Snake" for a long, winding touchdown run he made for the Lions. He went on to lead Paul "Bear" Bryant's University of Alabama football team to the 1965 national championship. He later starred in the NFL for 15 seasons, earning the league's most valuable player award in 1974 and directing the Oakland Raiders to their first Super Bowl in 1977.
Stabler filed for divorce from his wife in 2002. Court records in the divorce, which remains pending in Baldwin County Circuit Court, list Rose Stabler's address as the home on Ono Boulevard that the parties have agreed to sell. Kenny Stabler's address is listed on North Joachim Street in Mobile. The government has placed liens on both properties. It named Rose Stabler as a defendant because she may have a claim on the Ono Island property.
Her attorney, John Crowley, said his client does have an ownership interest in the house. He joined the request to put the tax proceedings on hold but declined further comment.
"The motion speaks for itself," he said.